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13 July 2024

RAK Investment and Development Office completes FDI transaction with Indian cement giant

By Wam

The government of Ras al-Khaimah, on Wednesday, completed a Foreign Direct Investment, FDI, deal with India’s Shree Cement.

The agreement completes the acquisition of the Emirate’s Union Cement Company, UCC, by Shree Cement exactly six months after the initial deal announcement was made on 11th January, 2018. The transaction was managed on behalf of the government by the Investment and Development Office, IDO, of Ras al-Khaimah.

Established in 1972, the UCC is one of the leading cement manufacturers in the UAE. Prior to acquisition by Shree Cement, the UCC was a listed company on the Abu Dhabi Securities Exchange, ADX. It has now been de-listed from ADX and converted into a private joint stock company.

The UCC purchase marks Shree Cement’s first foray into overseas markets, with the emirate providing a strategic location from which to grow business across export markets in the Arabian Gulf, the Middle East and East Africa from a strong operational base. Shree Cement’s commitment to continue to invest in the growth of the UCC operations and resources played a pivotal role in the government’s decision to pursue the deal.

Sheikh Khalid bin Saud Al Qasimi, Vice Chairman of the IDO, said, "The IDO is pleased that Shree Cement chose Ras al-Khaimah as its first international base in a deal that will see one of the biggest players in the cement industry operate outside of its domestic market for the first time. Shree’s management team knows that our emirate has the economic structure in place to conduct successful business including a transparent rule of law, regulations that contribute to the ease of doing business, and a long-term commitment to fostering further growth and development for our partners in businesses and industry."

Mohamed Sultan Al Qadi, member of the Board of Directors of the IDO, said, "Ras al-Khaimah has developed an economic environment that is attractive to FDI, which is clearly demonstrated by this transaction. The government of Ras al-Khaimah is committed to growing its assets and divesting them only once our criteria are met and when the time is right for the emirate and its people."

BG Bangur, newly appointed Vice Chairman of the UCC and Chairman of Shree Cement, said, "It is a historic moment for us as this is our first acquisition outside India. We are happy to be here. I feel delighted to interact with H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras al-Khaimah, and his modern leadership approach. Shree Cement is known for its high-energy efficiency and productivity levels. We want to make Union Cement a world-class company."